The Thailand Future Fund, an infrastructure fund put together by the government, jumped in its trading debut on the Stock Exchange of Thailand on Wednesday.
The fund (TFFIF) reached 10.30 baht per unit in early trading, a climb of 3% from the offering price of 10 baht, exceeding the advance in the benchmark SET index. The stock dropped to 10.20 baht as of 3.46pm.
The fund raised 44.7 billion baht in the biggest initial public offering of 2018, despite the rout in emerging-market equities. The portion allocated to retail investors oversubscribed by 60%, according to the State Enterprise Policy Office.
The fund will receive toll revenue from the Chalong Rat Expressway and Burapha Withi Expressway, both owned by the Expressway Authority of Thailand, and use the money it has raised to finance other infrastructure projects
The long-delayed listing is a key element of the government’s push to accelerate infrastructure projects and bolster investment in Southeast Asia’s second-largest economy
Officials are mulling whether to set up another infrastructure fund, this time for telecom assets, next year.
"This fund will be the platform for the government to raise money for future large infrastructure projects without destabilising public debt," Transport Arkhom Termpittayapaisith said in a briefing.